'Cracking result': Labor open to commercialising historic Sydney park

NSW Labor leader Michael Daley has opened the door to commercialising the heritage-listed Callan Park in Sydney's inner-west while announcing he would create a $5 million trust to restore the site's dilapidated buildings.

Mr Daley on Wednesday promised a Labor government would spend $10 million - $5 million on a public trust and $5 million for the trust to spend on repairs and restorations - to ensure Callan Park in Lilyfield has a "positive future".

Callan Park has long been a sensitive political issue.Credit:Louie Douvis

However, he also said he would be open to allowing cafes and restaurants to operate on the sprawling grounds, which is illegal.

"I wouldn’t discount some cafes and restaurants coming in here, having a meal in that building and looking out at this beautiful community with the harbour close-by," Mr Daley said.

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"It would be a cracking result, sure."

Allowing businesses into the park would mean first amending the Callan Park Act, which protects the site from commercialisation, over-development and privatisation.

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The 60-hectare site with historic sandstone buildings on Parramatta River has long been a politically sensitive issue in the seat of Balmain, which is held by the Greens. Labor had ruled out amending the act in 2016 and pressured the Coalition government to do the same.

At the announcement, Inner West Council mayor Darcy Byrne also said he would welcome cafes and restaurants because they would generate revenue and help turn the site into the "Centennial Park of the Inner West".

But Hall Greenland from Friends of Callan Park said changing the act would be "extremely dangerous" because giving businesses and developers access to the park would "ruin it".

"We're happy about the trust and we're glad Labor is listening, but they haven't heard the community say they want the act left as it is ... it is sacred text protecting the park," he said.

"If Labor is open to changing the act, then how can we stop the Liberals? It's an invite to the Liberals to pursue commercialisation."

Labor's environment spokeswoman Penny Sharpe said Labor was providing a much needed trust in response to the community's calls and it would be guided by the trust in the future.

"We’ll be open to what the trust says ... they’ll make recommendations to us and if something needs to be done, we’re open to that," she said.

The NSW government has neglected Callan Park, a heritage-listed site in Lilyfield.Credit:Louie Douvis

She said any suggestion Labor wanted to amend the act was wrong.

Ms Sharpe said in contrast to Labor, the government had neglected the park and the Greens had not been able to craft a solution.

Local Greens MP Jamie Parker said Labor indicating that it's open to seeing cafes and restaurants at Callan Park was tantamount to "tearing up" the act.

"Last time Labor were in government, they tried to build over 1500 apartments on Callan Park. Labor has demonstrated a fundamental lack of understanding regarding Callan Park," he said.